Hi there,
Can someone please explain to me how to compare FX hedged ETFs across different tranches? For reference, I am looking at the iShares Global Corporate Bond UCITS ETF and its tranches that are hedged against the USD (CRPU), the EUR (CRPH) and GBP (CRHG).
When I look at the YTD performance in the respective currencies, I get the following:
- CRPU (in USD): +0.53%
- CRPH (in EUR): -0.47%
- CRHG (in GBP): -0.87%
Should - in theory - the performance not be the same for all 3? What explains the difference? The hedging costs? And if so, do those really make up >1% for a period of 4 months?
Can someone please explain to me how to compare FX hedged ETFs across different tranches? For reference, I am looking at the iShares Global Corporate Bond UCITS ETF and its tranches that are hedged against the USD (CRPU), the EUR (CRPH) and GBP (CRHG).
When I look at the YTD performance in the respective currencies, I get the following:
- CRPU (in USD): +0.53%
- CRPH (in EUR): -0.47%
- CRHG (in GBP): -0.87%
Should - in theory - the performance not be the same for all 3? What explains the difference? The hedging costs? And if so, do those really make up >1% for a period of 4 months?